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AMT and Wolfgang's Itemized Deductions

Wolfgang's AGI is $140,000. He has the following itemized deductions for 2007:

Medical expenses [$12,000 - (7.5% x $140,000)] $1,500
State income taxes $4,200
Charitable contributions $5,000
Home mortgage interest on his personal residence $6,500
Casualty loss (after $100 and 10% reductions) $1,800
Miscellaneous itemized deductions
[$3,500-2%($140,000)] 700
_________
$19,700

a) Calculate Wolfgang's itemized deductions for AMT purposes
b) What is the amount of the AMT adjustment.

Solution Preview

Please see the attached file.

a) Calculate Wolfgang's itemized deductions for AMT purposes
Medical expenses [$12,000 - (7.5% x $140,000)] $1,500
Charitable ...

Solution Summary

This solution of 134 words shows step-by-step calculations of Wolfgang's itemized deductions for AMT purpose and the amount of the AMT adjustment. All formulas are shown with workings.

$2.19